Section 50IAC29-3-5. Calculating value of property

   (a) In reliance on the golf course's income and expense information, the assessing official shall determine the valuation of the property through the following steps:

STEP ONE: Determine potential gross income.

STEP TWO: Add miscellaneous income.

STEP THREE: Add the potential gross income to miscellaneous income to determine the effective gross income.

STEP FOUR: Deduct expenses and replacement reserves from the effective gross income to determine the net operating income.

STEP FIVE: Divide the net operating income by the overall capitalization rate to determine the assessed value.

  (b) For golf courses for which detailed income and expense information is unavailable, information such as ordinary income, depreciation, interest expenses, entertainment (if any), and golf cart income (less expenses) shall be utilized to determine the assessed value. (Department of Local Government Finance; 50 IAC 29-3-5; filed Aug 30, 2012, 2:00 p.m.: 20120926-IR-050120274FRA)